The recovery was aided by a rally in global enterprise software stocks following comments by Palantir CEO Alex Karp, although brokerages continue to remain cautious on the outlook for large-cap Indian IT companies.
In an interview with CNBC, Karp said many enterprises believe they are “paying for tokens that create no value” while sharing proprietary intellectual property and business intelligence with frontier AI companies such as OpenAI and Anthropic.
He described token-based pricing as a “wealth tax” that extracts value from enterprises without generating durable business outcomes, reinforcing Palantir’s positioning around enterprise AI solutions.
The comments lifted sentiment across global enterprise software stocks. Palantir surged 7.7%, while SAP gained 5%. Salesforce advanced 4%, Accenture climbed 5.4%, ServiceNow rose 6.5% and Snowflake added 2.6%.
Despite the rebound in global software names, one brokerage has turned “neutral to negative” on the Indian IT services sector, particularly large-cap companies.
The brokerage expects the top six Indian IT services companies to report constant currency revenue growth in the range of -0.9% to 1.1% on a sequential basis for the first quarter of FY27, weaker than its earlier expectations.
It also said that while India’s IT services exports grew 12% year-on-year in FY26, the top five listed IT services companies reported dollar revenue growth of just 3.6%, indicating that technology spending is increasingly shifting towards global capability centres (GCCs) and other AI-focused technology players.
Within the sector, the brokerage prefers select mid-cap names over large-cap peers. It remains positive on Mphasis and Coforge, citing strong total contract value (TCV) growth that provides better near-term revenue visibility.
Happiest Minds is also among its preferred picks, with the brokerage expecting the company to deliver stronger revenue growth in FY27 than it did in FY26.
